Sibanye-Stillwater has become one of the world’s leading sources of platinum group metals by successfully taking over number three platinum producer Lonmin, sending their shares soaring.Shareholders in both companies overwhelmingly supported the R4.2bn all-share transaction that will create a powerful player in the global PGM market, leaving it competing with Anglo American Platinum and Russia’s Norilsk Nickel as the largest producers of platinum and palladium, respectively.
Coupled with the 99.65% vote in favour from the 89% of Sibanye’s shareholders represented at a meeting at the company’s Kloof gold mine, the deal now needs sanction from the UK courts before being concluded. Lonmin has noted that it has lost a number of senior employees in the wait for the Sibanye transaction and staff morale is low, leading to a softening of its full-year production target to about 640,000oz of platinum and sharply higher costs.
Sibanye has a vast swathe of mines and concentrators bordering Lonmin’s assets that made Sibanye the only logical buyer for those assets to bring down costs and fill the entire processing pipeline, which is not operating at full capacity, he said.
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